The India-New Zealand Free Trade Agreement (FTA) is likely to come into force later this year after the two countries signed the agreement today, as the treaty must undergo parliamentary scrutiny in New Zealand before it can be activated, people familiar with the matter said.
In New Zealand, the signed free trade agreement will be reviewed by Parliament’s Foreign Affairs, Defense and Trade Committee (FADTC). The sources, who requested anonymity, said that after the national interest analysis, which includes public consultation, the committee will submit its report to Parliament for approval. The process is expected to take at least six months.
Prime Minister Christopher Luxon on Sunday confirmed the signing of the agreement. “It’s a once-in-a-generation agreement,” he said in a video on Channel
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“With so much global turmoil, the trade agreement with India has never been more important to New Zealand’s prosperity,” New Zealand Trade Minister Todd McLay said before his visit to India to sign the agreement. “Signing the FTA allows New Zealand to begin formal parliamentary examination of the treaty and means the public can examine the entire agreement.”
In a post to
Goyal met Maclay and his wife at the Taj Mahal on Sunday.
“This FTA will pave the way for enhanced business and trade between New Zealand and India within a few months. Indian goods will reach New Zealand markets without any import taxes or duties. Along with other Indian cities, Agra will also benefit as the leather industry, handloom, handicrafts and ODOP materials find a new market,” Goyal told reporters.
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Maclay is leading a delegation of cross-party parliamentarians and more than 30 business representatives, according to a New Zealand government statement.
Later in the day, the two ministers attended the India-New Zealand business meeting at a hotel in Agra. During the meeting, Maclay said that strengthening trade relations between New Zealand and India will open doors to trade in raw materials as well as strengthen the design and manufacturing sector.
“We had a rich industry engagement in Agra with leaders from the Leather & Footwear, Light Engineering, Ayush, Pharmaceuticals, Medical Devices and Sporting Goods sectors, joined by my friend Mr. Todd Maclay, New Zealand Minister for Trade and Investment,” Goyal said in a post on X.
The agreement includes a proposed commitment to invest New Zealand in India worth $20 billion over 15 years.
India and New Zealand concluded FTA negotiations on December 22, 2025, after nine months. Narendra Modi and Luxon announced the result, describing it as reflecting “the common ambition and political will to further deepen relations.”
Under the agreement, India ensured that all goods in New Zealand were exempt from customs duties, along with concessions on occupational mobility, while protecting its dairy sector. In contrast, India allowed market access across 70.03% of its tariff lines, covering 95% of New Zealand’s exports.
New Zealand will get immediate tariff removal on 30% of tariff lines such as sheep meat, wool, hides, logs and scrap metal.
(With inputs from HTC in Lucknow)
